Lincoln Avenue Pays $113M for Affordable Sacramento Community
This marked the largest deal to close in the metro since 2022.
Lincoln Avenue Communities has acquired the 1,300-unit Logan Park in Sacramento, Calif., for $112.5 million, Sacramento Business Journal reported. Reliant Group previously owned the affordable community, according to Yardi Matrix data.
No other asset commanded more than $112 million in metro Sacramento since 2022, the same source shows.
The community came online in 1986 and underwent a renovation process that kicked off in 2007 and finished by 2009. That same year, Logan Park was placed in service for yearly LIHTC amounting to $2.7 million, and most of the units were reserved for residents earning at or below 60 percent area median income during the initial 15-year compliance period. That period would expire this year.
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Logan Park consists of 43 buildings comprising one- and two-bedroom floorplans ranging from 672 to 933 square feet. Community amenities include a gym, multiple playgrounds and swimming pools, a computer lab, as well as several sports courts.
Located on 33 acres at 4141 Palm Ave., the property is roughly 12 miles northeast from downtown Sacramento. The Magpie Creek River flows near Logan Park while the Sacramento McClellan Airport operates about 2 miles away.
Preserving affordability while a shortage looms
Between 2019 and 2022, the shortage of affordable and available rental homes grew to 7.3 million units, according to a report by National Low Income Housing Coalition. Furthermore, affordability restrictions are set to expire for 374,497 federally assisted units within the next five years—accounting for 7 percent of existing stock—further amplifying the shortage, the same source shows.
Lincoln Avenue Communities focuses on developing affordable housing and preserving affordability, including maintaining accessibility for workforce housing. The company invests in renovations and ensures existing affordable units are not converted to market-rate.
Earlier this year, LAC preserved the affordability of another community. The company acquired Dunwoody Place, a 112-unit affordable property in Huntsville, Ala. Its 15-year initial compliance period for the LIHTC received expired in 2023.
Metro Sacramento’s investment on the mend
Year-to-date through November, 1,590 units changed hands in metro Sacramento for more than $340 million. Of these, more than 260 units were part of fully affordable properties—more than tripling last year’s figure of 70 units. Multifamily transaction volume across Greater Sacramento already surpassed the entirety of 2023, which clocked in at more than $210 million, the same source shows.
Although improving, the volume is still far below the yearly peaks registered during the early part of the decade, which saw metro Sacramento multifamily investment climb over the $1 billion mark on three occasions between 2020 and 2022, the data provider shows.
